Karora Resources Inc (KRR.CA) Stock Fundamental Analysis
Canada - TSX:KRR - CA48575L2066 - Common Stock
6.7 CAD
+0.16 (+2.45%)
We assign a fundamental rating of 7 out of 10 to KRR. KRR was compared to 803 industry peers in the Metals & Mining industry. KRR gets an excellent profitability rating and is at the same time showing great financial health properties. KRR has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings could make KRR a good candidate for value and growth and quality investing.
1. Profitability
1.1 Basic Checks
KRR had positive earnings in the past year.
KRR had a positive operating cash flow in the past year.
Of the past 5 years KRR 4 years were profitable.
In the past 5 years KRR always reported a positive cash flow from operatings.
1.2 Ratios
KRR has a Return On Assets of 2.29%. This is amongst the best in the industry. KRR outperforms 89.24% of its industry peers.
Looking at the Return On Equity, with a value of 3.78%, KRR belongs to the top of the industry, outperforming 89.86% of the companies in the same industry.
The Return On Invested Capital of KRR (5.99%) is better than 94.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KRR is significantly below the industry average of 12.29%.
The 3 year average ROIC (5.90%) for KRR is below the current ROIC(5.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 3.78% | ||
| ROIC | 5.99% |
ROA(3y)3.18%
ROA(5y)6.17%
ROE(3y)5.4%
ROE(5y)10.25%
ROIC(3y)5.9%
ROIC(5y)6.85%
1.3 Margins
The Profit Margin of KRR (3.22%) is better than 92.12% of its industry peers.
KRR's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 14.25%, KRR belongs to the best of the industry, outperforming 92.62% of the companies in the same industry.
KRR's Operating Margin has improved in the last couple of years.
The Gross Margin of KRR (40.26%) is better than 94.87% of its industry peers.
In the last couple of years the Gross Margin of KRR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.25% | ||
| PM (TTM) | 3.22% | ||
| GM | 40.26% |
OM growth 3Y-21.9%
OM growth 5Y4.75%
PM growth 3Y-61.26%
PM growth 5YN/A
GM growth 3Y-5.96%
GM growth 5Y7.74%
2. Health
2.1 Basic Checks
KRR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, KRR has more shares outstanding
KRR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, KRR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.00 indicates that KRR is not in any danger for bankruptcy at the moment.
KRR's Altman-Z score of 4.00 is fine compared to the rest of the industry. KRR outperforms 64.71% of its industry peers.
The Debt to FCF ratio of KRR is 1.63, which is an excellent value as it means it would take KRR, only 1.63 years of fcf income to pay off all of its debts.
KRR has a better Debt to FCF ratio (1.63) than 94.87% of its industry peers.
KRR has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of KRR (0.15) is worse than 68.96% of its industry peers.
Even though the debt/equity ratio score it not favorable for KRR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 4 |
ROIC/WACC0.76
WACC7.85%
2.3 Liquidity
A Current Ratio of 1.79 indicates that KRR should not have too much problems paying its short term obligations.
KRR's Current ratio of 1.79 is in line compared to the rest of the industry. KRR outperforms 46.81% of its industry peers.
A Quick Ratio of 1.33 indicates that KRR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.33, KRR is in line with its industry, outperforming 44.56% of the companies in the same industry.
The current and quick ratio evaluation for KRR is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 66.67% over the past year.
Measured over the past years, KRR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -56.65% on average per year.
KRR shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.81%.
The Revenue has been growing by 26.45% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)66.67%
EPS 3Y-56.65%
EPS 5YN/A
EPS Q2Q%133.33%
Revenue 1Y (TTM)24.81%
Revenue growth 3Y20.3%
Revenue growth 5Y26.45%
Sales Q2Q%19.35%
3.2 Future
The Earnings Per Share is expected to grow by 60.52% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 19.87% on average over the next years. This is quite good.
EPS Next Y193.38%
EPS Next 2Y102.98%
EPS Next 3Y60.52%
EPS Next 5YN/A
Revenue Next Year38.22%
Revenue Next 2Y24.68%
Revenue Next 3Y19.87%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.80, which means the current valuation is very expensive for KRR.
Based on the Price/Earnings ratio, KRR is valued cheaply inside the industry as 89.99% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.91, KRR is valued at the same level.
With a Price/Forward Earnings ratio of 7.74, the valuation of KRR can be described as very cheap.
KRR's Price/Forward Earnings ratio is rather cheap when compared to the industry. KRR is cheaper than 93.49% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.57. KRR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 7.74 |
4.2 Price Multiples
91.24% of the companies in the same industry are more expensive than KRR, based on the Enterprise Value to EBITDA ratio.
93.37% of the companies in the same industry are more expensive than KRR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.36 | ||
| EV/EBITDA | 8.95 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of KRR may justify a higher PE ratio.
KRR's earnings are expected to grow with 60.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y102.98%
EPS Next 3Y60.52%
5. Dividend
5.1 Amount
KRR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:KRR (8/2/2024, 7:00:00 PM)
6.7
+0.16 (+2.45%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners17.39%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.20B
Revenue(TTM)435.05M
Net Income(TTM)14.00M
Analysts75.56
Price Target6.36 (-5.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)94.48%
Min EPS beat(2)-57.57%
Max EPS beat(2)246.54%
EPS beat(4)2
Avg EPS beat(4)51.36%
Min EPS beat(4)-57.57%
Max EPS beat(4)246.54%
EPS beat(8)2
Avg EPS beat(8)5.83%
EPS beat(12)2
Avg EPS beat(12)-5.08%
EPS beat(16)5
Avg EPS beat(16)7.49%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)1.06%
EPS NQ rev (1m)400%
EPS NQ rev (3m)0%
EPS NY rev (1m)22%
EPS NY rev (3m)101.99%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)17.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 7.74 | ||
| P/S | 2.76 | ||
| P/FCF | 30.36 | ||
| P/OCF | 7.76 | ||
| P/B | 3.23 | ||
| P/tB | 3.23 | ||
| EV/EBITDA | 8.95 |
EPS(TTM)0.25
EY3.73%
EPS(NY)0.87
Fwd EY12.91%
FCF(TTM)0.22
FCFY3.29%
OCF(TTM)0.86
OCFY12.89%
SpS2.43
BVpS2.07
TBVpS2.07
PEG (NY)0.14
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 3.78% | ||
| ROCE | 11.55% | ||
| ROIC | 5.99% | ||
| ROICexc | 7.19% | ||
| ROICexgc | 7.19% | ||
| OM | 14.25% | ||
| PM (TTM) | 3.22% | ||
| GM | 40.26% | ||
| FCFM | 9.07% |
ROA(3y)3.18%
ROA(5y)6.17%
ROE(3y)5.4%
ROE(5y)10.25%
ROIC(3y)5.9%
ROIC(5y)6.85%
ROICexc(3y)7.5%
ROICexc(5y)9.01%
ROICexgc(3y)7.5%
ROICexgc(5y)9.01%
ROCE(3y)11.36%
ROCE(5y)13.19%
ROICexgc growth 3Y-26.23%
ROICexgc growth 5Y-24.41%
ROICexc growth 3Y-26.23%
ROICexc growth 5Y-24.41%
OM growth 3Y-21.9%
OM growth 5Y4.75%
PM growth 3Y-61.26%
PM growth 5YN/A
GM growth 3Y-5.96%
GM growth 5Y7.74%
F-Score7
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.63 | ||
| Debt/EBITDA | 0.41 | ||
| Cap/Depr | 166.97% | ||
| Cap/Sales | 26.43% | ||
| Interest Coverage | 14.17 | ||
| Cash Conversion | 118.04% | ||
| Profit Quality | 282.01% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 4 |
F-Score7
WACC7.85%
ROIC/WACC0.76
Cap/Depr(3y)256.17%
Cap/Depr(5y)245.72%
Cap/Sales(3y)37.86%
Cap/Sales(5y)30.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)66.67%
EPS 3Y-56.65%
EPS 5YN/A
EPS Q2Q%133.33%
EPS Next Y193.38%
EPS Next 2Y102.98%
EPS Next 3Y60.52%
EPS Next 5YN/A
Revenue 1Y (TTM)24.81%
Revenue growth 3Y20.3%
Revenue growth 5Y26.45%
Sales Q2Q%19.35%
Revenue Next Year38.22%
Revenue Next 2Y24.68%
Revenue Next 3Y19.87%
Revenue Next 5YN/A
EBIT growth 1Y58.24%
EBIT growth 3Y-6.04%
EBIT growth 5Y32.45%
EBIT Next Year524.63%
EBIT Next 3Y106.32%
EBIT Next 5YN/A
FCF growth 1Y2845.97%
FCF growth 3Y-12.98%
FCF growth 5YN/A
OCF growth 1Y54.53%
OCF growth 3Y13.34%
OCF growth 5YN/A
Karora Resources Inc / KRR.CA FAQ
What is the fundamental rating for KRR stock?
ChartMill assigns a fundamental rating of 7 / 10 to KRR.CA.
What is the valuation status for KRR stock?
ChartMill assigns a valuation rating of 9 / 10 to Karora Resources Inc (KRR.CA). This can be considered as Undervalued.
Can you provide the profitability details for Karora Resources Inc?
Karora Resources Inc (KRR.CA) has a profitability rating of 8 / 10.
What is the expected EPS growth for Karora Resources Inc (KRR.CA) stock?
The Earnings per Share (EPS) of Karora Resources Inc (KRR.CA) is expected to grow by 193.38% in the next year.